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Knitting / Apparel

Gildan To Open Joint-Venture Facility In US

Gildan Activewear Inc., Montreal, has formed a joint venture with Frontier Spinning Mills and plans to open a new yarn-spinning facility in Clarkton, N.C. Frontier will lease and operate the facility, which is expected to be fully operational by the end of Gildan's 2005 fiscal year.

The opening of the new facility comes in the wake of the scheduled closure at the end of this month of two Gildan yarn-spinning operations in Canada, which employ a total of 285 people. Most of the equipment from the Canadian operations will be shipped to the Clarkton facility.

The company is closing the Canadian facilities in an effort to remain cost-competitive, and is expanding its operations in the Caribbean Basin and Central America. Gildan is using its textile operations in Canada to manufacture shorter-run, higher-value product lines. The strategy has led to a lessened need for commodity yarns from the yarn-spinning facilities in Canada.

March 2005